Bank of Mexico steps in to support peso's value - and limit damage to Texas economy

Oct. 9--MEXICO CITY -- The peso's value dropped like an Acapulco cliff diver Wednesday because of the global financial crisis, prompting Mexico's central bank to prop up the currency -- and perhaps limit potential damage to Texas exporters and retailers. At exchange houses along the Mexico-Texas border and in the capital's airport, the peso fell from 12.3 to the U.S. dollar Tuesday to more than 14 to the dollar early Wednesday, at one point dropping about 15 percent. The Bank of Mexico and the Finance Ministry stepped in just after noon "given the conditions of uncertainty and lack of liquidity in the exchange market" and offered $2.5 billion for auction, which strengthened the currency to 12.2 pesos to the dollar, for a slight overall gain over Tuesday. But even at that level, the peso has lost about 20 percent of its value... [read full story]